Updated 25 October 2026
Quick answer: In Mexico in 2026, the minimum wage is MX$315.04/day (about $510 a month full time); an average earner keeps 87% of their pay after income tax and social security; mortgage rates are about 10.8%; the state pension age is 65. The table below puts 9 everyday money measures for Mexico side by side and ranks each one against the other countries in our data, using official figures from national statistics offices, central banks, the OECD and Eurostat.
Against the other countries in our data, Mexico stands out here: its mortgage rate, 10.8% (bank fixed rates, 2026), is the 2nd highest of 31 countries; its tax on an average wage, 13.2% (keeps 87%), is the 4th lowest of 38 countries; its minimum wage, MX$315.04/day (≈ $510/month), is the 7th lowest of 38 countries. It sits nearer the middle for state pension age. It has no inheritance tax for children.
Mexico at a Glance
| Measure | Mexico | Rank |
|---|---|---|
| Minimum wage | MX$315.04/day (≈ $510/month) | 7th lowest of 38 |
| Tax on an average wage | 13.2% (keeps 87%) | 4th lowest of 38 |
| Pay rise forecast 2027 | 4.9% | 7th highest of 29 |
| Mortgage rate | 10.8% (bank fixed rates, 2026) | 2nd highest of 31 |
| State pension age | 65 | 16th highest of 39 |
| Pension (share of pay) | 79.6% of net pay | 11th highest of 50 |
| Bank deposit protection | 400,000 UDIs (≈ MX$3.5m) per person, per bank | — |
| Inheritance tax (children) | None | — |
| Retirement visa income | About $4,400–4,700 a month or about $75,000 in savings | — |
Rank compares Mexico with the other countries in each dataset; "highest" means the largest value. "—" means the measure isn't ranked.
Minimum Wage in Mexico (2026)
The legal minimum wage in Mexico is MX$315.04/day. For a month of full-time work that is about $510 at current exchange rates, 7th lowest of 38 countries in our comparison. General rate from 1 January 2026, up 13%; higher in the northern border zone.
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Income Tax and Take-Home Pay in Mexico
A single worker on the average wage in Mexico (about $21,000 at purchasing-power parity) pays 13.2% of gross pay in income tax and employee social security, so they keep 87%. That is 4th lowest of 38 countries, against an OECD average of 25.1%.
Income tax and employee social security take 13.2% of pay at the average wage, 9.6% at two-thirds of it and 17.1% at 1.67 times it. Including employer contributions, the total tax wedge is 21.7% of labour costs.
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Pay Rises in Mexico: 2027 Forecast
Employers in Mexico expect to raise salaries by 4.9% in 2027 (median of the major pay surveys), after 4.8% in 2026.
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Mortgage Rates in Mexico (2026)
The typical mortgage rate in Mexico is 10.8% (bank fixed rates, 2026), 2nd highest of 31 countries.
Typical bank fixed rate in mid-2026; offers range from about 9.9% to 11.5%, with a total annual cost (CAT) near 14%. Banxico's policy rate 6.50%.
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Retirement Age in Mexico
The state pension age in Mexico is 65 for people reaching it in 2026; the earliest you can claim is 60 (reduced). Future change: none legislated. IMSS old-age pension; a reduced 'cesantÃa' pension from 60.
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How Much the State Pension Pays in Mexico
A full-career average earner in Mexico can expect a mandatory pension worth about 79.6% of their previous net pay, 11th most generous of 50 countries (OECD average 63.2%). Low earner (half the average wage): 132%. High earner (twice the average): 57%.
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How Much of Your Money Is Protected in Mexico
Bank deposits in Mexico are protected up to 400,000 UDIs (≈ MX$3.5m) per depositor, per bank (about $186,300), under the IPAB scheme. Set in inflation-linked UDIs; peso value changes daily. Money in payment apps and e-money wallets is usually not covered.
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Inheritance Tax in Mexico
Mexico has no inheritance tax for children.
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Retiring to Mexico From Abroad
Foreign retirees usually move to Mexico on the Temporary residency, which requires About $4,400–4,700 a month or about $75,000 in savings (about $4,500 a month). Prices are about 59% of US levels, so $2,000 buys roughly what $3,390 would in the US. Residents can be taxed on worldwide income; many foreign pensions are covered by tax treaties.
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Mexico vs Brazil, Canada and United States
The same measures for Mexico and its nearest neighbours in our data, side by side.
| Measure | Mexico | Brazil | Canada | United States |
|---|---|---|---|---|
| Minimum wage | MX$315.04/day (≈ $510/month) | R$1,621/month (≈ $321/month) | C$18.15/hour (≈ $2,248/month) | $7.25/hour (≈ $1,257/month) |
| Tax on an average wage | 13.2% (keeps 87%) | — | 25.6% (keeps 74%) | 24.3% (keeps 76%) |
| Pay rise forecast 2027 | 4.9% | 4.5% | 3.2% (inflation 3.1%) | 3.4% (inflation 3.7%) |
| Mortgage rate | 10.8% (bank fixed rates, 2026) | 11.19% (Caixa lowest rate, 2026) | 5.14% (5-year fixed, big bank, Oct 2026) | 7.32% (30-year fixed, 22 Oct 2026) |
| State pension age | 65 | 65 men / 62 women | 65 | 67 |
| Pension (share of pay) | 79.6% of net pay | 97.5% of net pay | 45.1% of net pay | 51.3% of net pay |
| Bank deposit protection | 400,000 UDIs (≈ MX$3.5m) per person, per bank | R$250,000 per person, per bank | C$100,000 per person, per bank | $250,000 per person, per bank |
| Inheritance tax (children) | None | top rate 8% | None | top rate 40% |
Compare Mexico With Other Countries
See every country side by side in Compare Countries 2026: Wages, Tax, Mortgages and Pensions, or compare Mexico with nearby countries in our data: Brazil, Canada, the United States, South Africa, India and China.
Related Guides
Figures checked against the official sources listed in each linked guide in October 2026. Exchange-rate conversions are approximate. This page is for information and isn't financial or legal advice.
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